The Madrid property market has established itself as one of the most dynamic and attractive in Europe. With historic growth in 2024, the Spanish capital is now a prime destination for international investors and buyers of exclusive properties.
Housing in Madrid: sustained growth and high profitability
In 2024, the average purchase price in Madrid reached €3,868 per square metre, following a 22.6% increase in just twelve months. This data confirms the city’s potential for appreciation, driven by:
- Madrid’s economic and labour strength.
- Growing interest from international investors, especially from Latin America and the US.
- A limited supply of new housing that sustains upward pressure on property values.
The districts of Salamanca, Chamberí and Retiro remain the most exclusive, with prices above €7,000 per square metre, reinforcing their position as safe havens for high-net-worth individuals. In the province, Pozuelo de Alarcón, Boadilla del Monte and Las Rozas stand out, where the combination of quality of life and proximity to the capital is attracting increasing investment in luxury properties.
Renting in Madrid: rising returns
The rental market closed 2024 with an average price of €23.07/m² per month, representing year-on-year growth of 11.2%. This trend makes renting a particularly attractive option for those seeking sustained returns in the short and medium term.
The most sought-after districts, such as Centro, Chamberí and Salamanca, have rents above €26/m², while municipalities such as Majadahonda and Villanueva de la Cañada offer an excellent balance between profitability and growth prospects.
New trends driving the market
The Madrid market is evolving towards more sophisticated models, in line with international preferences:
- Luxury housing: 18% growth forecast in sales in 2025.
- Buy to Rent: boom in purchases for rental purposes, as a strategy for profitability and revaluation.
- Co-living: a model that is expanding among young professionals and expatriates.
- Smart homes: one in four homes will incorporate home automation by 2025, providing efficiency and added value.
These trends confirm that Madrid not only offers stability and profitability, but also a modern and constantly innovating market.
Outlook for 2025
Forecasts indicate that in 2025, purchase prices will grow by between 4% and 5%, while rents could increase by around 7%. This reflects a moderation after the record high in 2024, but maintains Madrid as one of the most solid and competitive markets in Europe.
The prime segment will continue to be a safe haven in the face of global volatility, while flexible models such as co-living and investments in high-end residential areas on the outskirts will consolidate their position as strategic alternatives.
The Madrid property market combines security, profitability and international appeal. For those seeking exclusive properties, solid investments or sustained long-term appreciation, the Spanish capital is positioned as a must-see destination in 2025.
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